NSW retail lease review checklist
NSW retail leases sit under a protective statutory regime that limits what the landlord can recover and imposes strict disclosure obligations. This checklist walks through a tenant-side review.
This is a 12-step checklist for reviewing a retail lease in NSW. It covers the lessor disclosure statement, permitted use, outgoings, fit-out, and termination under the Retail Leases Act 1994 (NSW).
The checklist
Confirm the Act applies
Check the premises and use fall within the retail shop definition and the lease is not excluded under schedule 1A.
Review the lessor disclosure statement
Confirm the disclosure statement was provided at least 7 days before the lease and is complete.
Check permitted use and exclusivity
Confirm the permitted use is broad enough and note any exclusivity or anchor tenant protections.
Review rent and review mechanism
Check the starting rent, review method, and confirm that ratchet clauses are prohibited.
Review outgoings and exclusions
Confirm only permitted outgoings are recoverable — no land tax, no capital expenditure.
Check fit-out and make-good
Review the fit-out schedule, rent-free period, and make-good obligations at end of term.
Check guarantee and security
Confirm the bank guarantee or security deposit amount and the return conditions.
Review assignment provisions
Check assignment consent is not unreasonably withheld and the required disclosure to the assignee.
Check option to renew
Confirm the option exercise window, rent determination on renewal, and any preconditions.
Review demolition and relocation
Check any demolition or relocation clause and the compensation payable to the tenant.
Check termination for breach
Review default and termination provisions, notice periods, and any cure rights.
Prepare advice to tenant
Prepare a written advice identifying statutory protections, commercial risks, and recommended amendments.
When this checklist applies
Use this checklist when acting for a retail tenant entering a new lease or renewal in NSW.
Common pitfalls
- Landlord recovering land tax in breach of section 23
- Missing the 7-day disclosure statement deadline
- Ratchet clauses slipping through under market review
- Vague make-good obligations that become expensive at end of term
- Not diarising the option exercise window
Run this checklist on a real matter
Quillio reviews NSW retail leases against the Retail Leases Act and flags unlawful outgoings. See /practice-areas/commercial-lawyers or start a free trial.
This checklist is a general guide. Retail leases are commercially sensitive — always advise on negotiation strategy alongside the legal review.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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